UNIVERSITY OF ALABAMA OM 300
CHILCUTT EXAM ONE ACTUAL
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥ activities within the supply chain. Answer: 1. obtaining raw materials
2. transforming raw materials into basic finished goods
3. further processing of basic finished goods into customized products
that are sold
⩥ supply chain echelon/tiers. Answer: -the lower the tier level, the closer
the level to the customer
⩥ objective of supply chain management. Answer: build a chain of
suppliers that focuses on maximizing value to the ultimate customer
⩥ Supply Chain Management. Answer: The business function that
coordinates all of the network links
-coordinates movement of goods through supply chain from suppliers to
manufacturers to distributors
-promotes information sharing in the supply chain, such as forecasts,
sales data, & promotions
,⩥ The Supply Chain's Strategic Importance. Answer: supply chain
management is the integration of the activities that:
-procure materials and services
-transform them into intermediate goods and final products, &
-deliver them through a distribution system
⩥ activities performed as part of supply chain management. Answer: 1.
suppliers
2. distributors
3. warehousing and inventory
4. transportation vendors
5. order fulfilment
6. credit and cash transfers
7. accounts payable and receivable
8. sharing customer, forecasting, and production information
⩥ Outsourcing. Answer: -transfers traditional internal activities and
resources of a firm to outside vendors
-utilizes the efficiency that comes with specialization
-firms outsource:
information technology, accounting, legal, logistics, & production
⩥ 6 sourcing strategies. Answer: 1. negotiating with many suppliers
,2. long-term partnering with few suppliers
3. vertical integration
4. joint ventures
5. Keiretsu
6. virtual companies that use suppliers on an as needed basis
⩥ Many Suppliers. Answer: -Commonly used for commodity products
-Purchasing is typically based on price
-Suppliers compete with one another
-Supplier is responsible for maintaining necessary levels of technology,
expertise, forecasting abilities, as well as cost, quality, and delivery
competencies
⩥ Few Suppliers. Answer: -Buyer forms longer term relationships with
fewer suppliers
-Create value through economies of scale and learning curve
improvements
-Suppliers more willing to participate in JIT programs and contribute
design innovations and technological expertise
-Cost of changing suppliers is huge
Trade secrets and other alliances
⩥ Vertical Integration. Answer: -developing the ability to produce goods
or services previously purchased
, -integration may be forward, towards the customers, or backwards,
towards suppliers
-can improve cost, quality, and inventory but requires capital,
managerial talent, and demand
-risky in industries with undergoing technological changes
⩥ joint venture. Answer: -formal collaborations:
enhance skills, secure supply, & reduce costs
-cooperate without diluting the brand or conceding competitive
advantage
⩥ Keiretsu Networks. Answer: -part collaboration, part purchasing from
few suppliers, and part vertical integration
-supplier becomes part of the company coalition
-often provide financial support for suppliers through ownership or loans
-members expect long-term relationships and provide technical expertise
and stable quality production
-may extend through several tiers of the supply chain
⩥ Virtual Companies. Answer: -Rely on a variety of good, stable
relationships to provide services on demand
-Exceptionally lean performance, specialized management expertise,
low capital investment, flexibility, and speed
CHILCUTT EXAM ONE ACTUAL
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
⩥ activities within the supply chain. Answer: 1. obtaining raw materials
2. transforming raw materials into basic finished goods
3. further processing of basic finished goods into customized products
that are sold
⩥ supply chain echelon/tiers. Answer: -the lower the tier level, the closer
the level to the customer
⩥ objective of supply chain management. Answer: build a chain of
suppliers that focuses on maximizing value to the ultimate customer
⩥ Supply Chain Management. Answer: The business function that
coordinates all of the network links
-coordinates movement of goods through supply chain from suppliers to
manufacturers to distributors
-promotes information sharing in the supply chain, such as forecasts,
sales data, & promotions
,⩥ The Supply Chain's Strategic Importance. Answer: supply chain
management is the integration of the activities that:
-procure materials and services
-transform them into intermediate goods and final products, &
-deliver them through a distribution system
⩥ activities performed as part of supply chain management. Answer: 1.
suppliers
2. distributors
3. warehousing and inventory
4. transportation vendors
5. order fulfilment
6. credit and cash transfers
7. accounts payable and receivable
8. sharing customer, forecasting, and production information
⩥ Outsourcing. Answer: -transfers traditional internal activities and
resources of a firm to outside vendors
-utilizes the efficiency that comes with specialization
-firms outsource:
information technology, accounting, legal, logistics, & production
⩥ 6 sourcing strategies. Answer: 1. negotiating with many suppliers
,2. long-term partnering with few suppliers
3. vertical integration
4. joint ventures
5. Keiretsu
6. virtual companies that use suppliers on an as needed basis
⩥ Many Suppliers. Answer: -Commonly used for commodity products
-Purchasing is typically based on price
-Suppliers compete with one another
-Supplier is responsible for maintaining necessary levels of technology,
expertise, forecasting abilities, as well as cost, quality, and delivery
competencies
⩥ Few Suppliers. Answer: -Buyer forms longer term relationships with
fewer suppliers
-Create value through economies of scale and learning curve
improvements
-Suppliers more willing to participate in JIT programs and contribute
design innovations and technological expertise
-Cost of changing suppliers is huge
Trade secrets and other alliances
⩥ Vertical Integration. Answer: -developing the ability to produce goods
or services previously purchased
, -integration may be forward, towards the customers, or backwards,
towards suppliers
-can improve cost, quality, and inventory but requires capital,
managerial talent, and demand
-risky in industries with undergoing technological changes
⩥ joint venture. Answer: -formal collaborations:
enhance skills, secure supply, & reduce costs
-cooperate without diluting the brand or conceding competitive
advantage
⩥ Keiretsu Networks. Answer: -part collaboration, part purchasing from
few suppliers, and part vertical integration
-supplier becomes part of the company coalition
-often provide financial support for suppliers through ownership or loans
-members expect long-term relationships and provide technical expertise
and stable quality production
-may extend through several tiers of the supply chain
⩥ Virtual Companies. Answer: -Rely on a variety of good, stable
relationships to provide services on demand
-Exceptionally lean performance, specialized management expertise,
low capital investment, flexibility, and speed
